Check my work Green & Company is considering investing in a robotics manufacturing line. Installation of the line will cost an estimated $15 million. This amount must be paid immediately even though construction will take three years to complete (years 0, 1, and 2). Year 3 will be spent testing the production line and, hence, it will not yield any positive cash flows. If the operation is very successful, the company can expect after-tax cash savings of $10 million per year in each of years 4 through 7. After reviewing the use of these systems with the management of other companies, Green's controller has concluded that the operation will most probably result in annual savings of $7.2 million per year for each of years 4 through 7. However, it is entirely possible that the savings could be as low as $3.0 million per year for each of years 4 through 7. The company uses a 12 percent discount rate. Use Exhibit A.8. Required: Compute the NPV under the three scenarios. Note: Round PV factor to 3 decimal places. Enter your answers in thousands of dollars, rounded to the nearest whole number. Negative amounts should be indicated by a minus sign. Best Case Expected Worst Case Net present value Exhibit A.8 Present Value of $1 Year 1/2% 1% 2% 4% 5% 6% 8% 10% 12% 14% 15% 16% 18% 20% 22% 24% 25% 30% 35% 40% 1 0.995 0.990 0.980 0.962 0.952 0.943 0926 0.909 0.893 0.877 0.870 0.862 0.847 0.820 0.833 0.306 0.800 0.769 0.741 0.714 2 0.990 0.980 0961 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.756 0.743 0.718 0.694 0.672 0.650 0.640 0.392 0549 0310 3 0.985 0971 0942 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.658 0.641 0.609 0579 0.551 0.524 0312 0.455 0.406 0.364 4 0.980 0.961 0.924 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.572 0.552 0.516 0.482 0.423 0.451 0410 0.350 0301 0.260 5 0.975 0.951 0.906 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.497 0476 0.437 0.402 0.370 0.341 0.328 0.269 0.223 0.186 6 0.971 0.942 0.888 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.432 0410 0.370 0.335 0.303 0.262 0.275 0.207 0.165 0.133 7 0.966 0.933 0.871 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.376 0.354 0314 0.279 0.249 0.222 0210 0.159 0.122 0.095 8 0.961 0.923 0.853 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.327 0.305 0.266 0.233 0.204 0.179 0.368 0.123 0.091 0.068 9 0.956 0.914 0.837 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.284 0.263 0.225 0.194 0.167 0.144 0.134 0.094 0.067 0.048 10 0.951 0.820 0905 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.247 0.227 0.191 0.162 0.137 0.116 0.307 0.073 0.050 0035 11 0947 0.896 0.804 0.650 0.585 0527 0429 0.350 0.287 0.237 0.215 0.195 0.162 0.135 0.112 0.094 0.086 0.056 0.037 0.025 12 0.942 0.887 0.788 0.625 0.557 0497 0.397 0.257 0.208 0.319 0.187 0.168 0.137 0.112 0.092 0.076 0.069 0.043 0.027 0018 13 0.937 0.879 0.773 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.075 0.061 0.055 0.033 0.020 0.013 14 0.933 0.870 0.758 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.1411 0.125 0.099 0.078 0.062 0.049 0.044 0.025 0.015 0.009 15 0928 0.861 0.743 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.051 0.040 0.035 0.020 0.011 0.006